Shalehaven delivered a 90.7% first year tax deduction on invested capital for its 2024 Fund investors, who were able to use this deduction to offset active income.
Shalehaven has paid a 38% annualized cash distribution (to date) in 2025 to its 2024 Fund investors. The 2024 Fund is projected to achieve a return of capital in less than 24 months (by the end of 2026).
To date, Shalehaven has invested in 42 wells and counting, creating risk-mitigated, diversified annual portfolios for its investors.
Shalehaven is currently invested in assets in the Permian, Bakken, Haynesville, and Powder River basins but will also evaluate transactions in the other proven basins in the Lower 48.
Shalehaven is currently invested in assets operated by prominent companies such as Devon, EOG, Hunt, ConocoPhillips, Admiral Permian, and Aethon.
Shalehaven has a balanced portfolio of oil, gas, and NGLs of approximately 40/40/20, respectively.
Shalehaven prides itself on its transparency and supplies investors with third party financial reviews and third party asset reviews of each vintage fund.
Yes. As a recent example, our 2024 Fund achieved several notable milestones that demonstrate our consistent performance and commitment to investors:
~41% annualized cash-on-cash return reported in our first full 90-day quarterly distribution.
This distribution included three months of production revenue from our Admiral (Permian) wells and one month of production from the Hunt (Bakken) wells, both of which are currently outperforming projections.
Within just nine months, Shalehaven delivered a market-leading 90.7% deduction on 2024 income and is on track for a >35% annualized cash distribution this year.
Our current portfolio includes assets with 25+ years of production potential, providing long-term value and stability for our investors.
These accomplishments highlight our ability to not only meet but exceed expectations, reinforcing confidence in our business model and future growth.
Shalehaven delivered a 90.7% first year tax deduction on invested capital for its 2024 Fund investors, who were able to use this deduction to offset active income.
Shalehaven has paid a 38% annualized cash distribution (to date) in 2025 to its 2024 Fund investors. The 2024 Fund is projected to achieve a return of capital in less than 24 months (by the end of 2026).
To date, Shalehaven has invested in 42 wells and counting, creating risk-mitigated, diversified annual portfolios for its investors.
Shalehaven is currently invested in assets in the Permian, Bakken, Haynesville, and Powder River basins but will also evaluate transactions in the other proven basins in the Lower 48.
Shalehaven is currently invested in assets operated by prominent companies such as Devon, EOG, Hunt, ConocoPhillips, Admiral Permian, and Aethon.
Shalehaven has a balanced portfolio of oil, gas, and NGLs of approximately 40/40/20, respectively.
Shalehaven prides itself on its transparency and supplies investors with third party financial reviews and third party asset reviews of each vintage fund.
Investing in domestic energy can offer significant tax advantages and potential for above-market returns. The industry is supported by a century-old tax code and is essential for national energy independence. Due to technological advancements, drilling risk in proven areas is lower than ever before.
A non-operated working interest means the investor owns a portion of a project but does not control the drilling operations. While this generally limits an investor’s liability to third parties, there are exceptions, such as liability for a proportionate share of costs if the operator fails to pay. Shalehaven addresses this by selecting reputable operators, reviewing project metrics, and maintaining liability insurance that names the general partners as insureds.
A Non-operated investments can be attractive because they allow an investor to participate in the upside of oil and gas development without the day-to-day management and high overhead costs. This model can also thrive in low-price environments, as operators may need more capital, creating new opportunities.
A significant portion of a typical horizontal well’s cash flow, about one-third, is generated in the first two years of production. This upfront cash flow can provide a quick payback and strong IRR, with most wells continuing to produce for decades, providing long-term distributions.
“Proven” generally refers to PUD and P1/P2 Reserve classifications as defined by the Society of Petroleum Engineers. This means investing in areas where successful wells have already been drilled, which lowers the risk compared to exploring unproven areas.
Exploration funds have a higher risk/reward profile, as they generally seek to turn cheaper acreage into proven status by drilling test wells. However, an investment in an exploration fund could go to zero if no economic hydrocarbons are found. Proven funds, on the other hand, while not without risks, generally have a lower risk and a higher probability of generating returns because they invest in established areas.
A significant benefit is the deduction of Intangible Drilling Costs (IDCs) in the year they are incurred. The tax code allows for 100% of these costs to be deducted in the year they are incurred, which can provide a substantial write-off in the first year. This deduction can be used to offset both active (W-2) income and capital gains. For example, Shalehaven’s 2024 Fund delivered a 90.7% year-one deduction to its investors.
Yes. A working interest in an oil or gas well is specifically excluded from the passive activity loss rules, regardless of whether you actively participate in the business. This unique tax provision allows investors to use the deductions to offset active income, such as wages or capital gains.
The IRS defines a working interest in an oil and gas well as a non-passive activity, as long as the investor’s liability is not limited. This means that losses from your investment can be used to offset active income sources, such as salaries and business income. Shalehaven’s fund is structured as a general partnership (GP) to take advantage of this exception.
The “GP/LP Flip” is a commonly used structure in tax-advantaged oil and gas funds. It allows investors to initially come into the fund as general partners (GPs) to benefit from the tax code’s exception for non-passive income. After the fund’s capital has been deployed, investors are converted to limited partners (LPs) to reduce liability.
Shalehaven’s strategy focuses on “proven” or “probable” investments only, avoiding speculative “exploration” or “wildcat” drilling. The fund also diversifies its portfolio across different basins, operators, and wells to limit asset concentration risk. Additionally, it employs a hedging strategy to protect against commodity price fluctuations.
Shalehaven evaluates opportunities based on several criteria, including operator reputation and financial standing, the basin’s geological history, and financial metrics. Shalehaven uses proprietary software to analyze single-well economics and generate over 50 scenarios for risk mitigation. The fund is prohibited from deploying capital in unproven areas.
A core tenet of Shalehaven’s investment thesis is diversification. A diversified portfolio helps to mitigate asset concentration risk by spreading investments across different basins, operators, wells, and commodity types. This strategy helps to reduce the risk associated with a single project or operator.
Returns are generated from both tax savings and cash distributions. For example, a $200,000 investment could generate over $67,000 in cash tax savings in the first year alone. In addition, investors receive cash distributions from the wells, which are paid out quarterly. After the first year, investors can benefit from continued depreciation and depletion tax benefits that further reduce tax liability.
Shalehaven’s investment strategy focuses on a portfolio management style that balances risk and return by investing in proven, drill-ready projects. This approach is designed to provide investors with a lower-risk profile compared to “exploration” or “wildcatting” funds, which assume a higher risk for a larger potential upside. Further, many other funds recycle or reinvest revenue (investor distributions) back into new projects in an attempt to create a compounding effect over time, whereas Shalehaven distributes 100% of revenue to its investors.
Shalehaven uses various hedging strategies to protect against price risk. This can include using near-term put options to protect against price declines and longer-term volume swaps to lock in a price for future production. Shalehaven would rather protect investor returns than hope for price increases.
Shalehaven’s annual funds do not use leverage or debt as part of the business model or fund structure. Additionally, unlike many oil and gas funds, Shalehaven’s funds cannot capital call.
Shalehaven is unique in that it gives individual investors the flexibility to either exit the fund after payback or continue receiving distributions.
While a fund may be referred to as “no fee,” investors can be subject to various fees, commissions, and other expenses. These can include marketing, commissions, promotion fees, and management fees. Some funds may charge fees to affiliates or have high operating expenses that reduce the dollars invested and distributed.
When evaluating other funds, you should look for several key factors. It is important to compare the fund’s fee structure, including any commissions, placement fees, or management fees. You should also review the fund’s asset diversification and whether it invests in proven or exploration projects. Finally, consider whether they offer a liquidity option and the investor’s share of distributions before and after payback.
First, ask how much of your investment, net of fees and promoters, is actually being invested. The answer might surprise you. Second, ask if the assets being acquired by the fund/investor are being acquired at cost or whether management (or an affiliate) is taking an acquisition fee or other form of promotion. Third, ask how much of the revenue from the assets, net of fees, overhead, and carries, is actually distributed to investors. Bonus question: Can you verify these answers through the fund’s investment materials?